Global ETF News Older than One Year
Weak dollar hints at action to curb yen
December 30, 2010--The dollar lost ground against the yen for the ninth session in the past 10, raising speculation that Japan might be forced to intervene once again to stem the rise in its currency.
Late in New York, the yen was up 0.9 per cent to Y81.61 against the dollar, within striking distance of the 15-year high of Y80.22 that it hit in October and the record peak of Y79.70 it struck in 1995.
Source: FT.com
Investor Confidence Index Rises from 96.4 to 104.4 in December
December 28, 2010--State Street Global Markets, the investment research and trading arm of State Street Corporation (NYSE:STT), today released the results of the State Street Investor Confidence Index® for December 2010.
Globally, Investor Confidence rose 8.0 points from November's revised reading of 96.4 to 104.4. In North America, confidence rose 7.7 points to 103.1 from November's level of 95.4. However, Investor confidence was not as positive among European investors with the index decreasing 10.8 points to 99 from November's revised level of 109.8. In Asia, like North America, institutional investors were equally optimistic and confidence in that region increased by 7.4 points from a revised November level of 95.5 to 102.9 in December.
Developed by Harvard University professor Kenneth Froot and Paul O'Connell of State Street Associates, the State Street Investor Confidence Index measures investor confidence on a quantitative basis by analyzing the actual buying and selling patterns of institutional investors. The index assigns a precise meaning to changes in investor risk appetite: the greater the percentage allocation to equities, the higher is risk appetite or confidence. A reading of 100 is neutral; it is the level at which investors are neither increasing nor decreasing their allocations to risky assets. The index differs from survey-based measures in that it is based on the actual trades, as opposed to opinions, of institutional investors.
"This month the confidence of institutional investors has continued its late-year improvement. Clearly, the scenario for moderated world growth with recovery in the US has increasingly gained traction," commented Froot. "Confidence in both North America and Asia has now edged above the neutral level of 100, after a relatively weak mid-2010."
"The strong decline of European investors' confidence shows that the regions' investors remain quite jittery in the face of intra-European turmoil," added O'Connell. "We went quickly from a regime of concern around the euro and the liquidity of some of the smaller countries' debts, to a regime where those concerns were ignored. And now we have come full circle: European investors are back again worrying that high sovereign indebtedness may prove destabilizing for the region."
Source: State Street Global Markets
Two-speed Recovery to Extend into 2011, Says IMF
Two-speed recovery to dominate 2011, with growth remaining slow in advanced economies
In emerging economies, challenge for some is to manage possible overheating and capital flows
Number of countries in Europe face tough and long macroeconomic adjustment
December 30, 2010--The two-speed global economic recovery is likely to dominate 2011, with weak growth in advanced economies barely enough to bring down unemployment and emerging markets facing the challenges of success, including how to avoid overheating and handle strong capital inflows, the IMF’s Chief Economist, Olivier Blanchard, said.
In an assessment of the global economy at the end of 2010, and the prospects for 2011, Blanchard said that countries should continue to focus on rebalancing their economies in the coming year, including structural measures and exchange rate adjustments.
“Without this economic rebalancing, there will be no healthy recovery,” he told IMF Survey, the online magazine of the International Monetary Fund (IMF).
In an interview, Blanchard talked about the central role of the Group of Twenty (G-20) advanced and emerging market economies in helping during the global crisis and the need for continued cooperation to build on the recovery, as well as the prospects for both Europe and low-income countries.
Source: IMF
2010 “Market’s Measure”Preliminary Report - A Monthly Report From Dow Jones Indexes On The Performance Of U.S., European, Asia And Other Global Stock Market Indexes
Dow Jones Industrial Average Posts 5.17% \Gain In December, European Stocks Gain 7.87%, Asia Rises 7.32% And World Equities Rise By 7.41% - Automobiles & Parts Sector Posts Biggest Gain For 2010 In Worldwide - Utilities Sector Takes The Hardest Hit For 2010 In Europe & Worldwide
December 29, 2010--As of December 28, the Dow Jones Industrial Average rose 5.17% in December, closing at 11575.54. Stock market indexes in Europe, Asia and globally were up in December, according to preliminary monthly figures from global index provider, Dow Jones Indexes.
The Dow Jones Industrial Average rose 5.17% in December, closing at 11575.54. Year-to-date, the index is up 11.00%.
The Dow Jones Europe Index rose 7.87% in December to 268.08. So far this year, the index is up 1.45%.
The Dow Jones Asian Titans 50 Index rose 7.32% in December to 144.49. So far this year, the index is up 7.61%.
The Dow Jones Global Titans 50 Index rose 7.41% in December, closing at 177.06. Year-to-date, the index is up 1.97%.
Source: Mondovisione
2010 Performance of MSCI Indices Reveals Mixed Picture in Global Equity Markets
Global markets continue to recover in 2010 but at a slower pace than in 2009
Emerging and Frontier Markets show strongest signs of recovery
Europe significantly underperformed the USA mainly due to sovereign debt crisis
December 29, 2010--MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services, today published the year-to-date performance of its MSCI indices, revealing amoderate recovery of the global equity markets in 2010.
Globally, major financial markets continued to recover in 2010, but at a substantially slower pace than in 2009. This muted recovery was marked by moderate year-to-date performance results for all major regional MSCI indices across different size segments. The MSCI All CountryWorld Investable Market Index (ACWI IMI), which combines 24 Developed and 21 Emerging Markets across large, mid and small cap size segments, delivered a 2010 year-to-date performance of 11.4% versus 31.5% in 2009.1
Developed Markets exhibited the weakest recovery in 2010. The MSCI World Index posted a relatively modest year-to-date return of 9.2% compared to a return of 27.0% in 2009. Within Developed Markets, the MSCI Europe Index significantly underperformed the MSCI USA Index year-to-date, posting a return of 0.4% versus a return of 13.2% for the MSCI USA Index. Europe’s relatively poor 2010 performance record is mainly explained by the sovereign debt crisis that impacted countries such as Greece, Spain and Ireland, which all posted negative year-to-date MSCI index returns of -47.2%, -26.6% and -20.4%, respectively. In contrast, the MSCI Sweden Index was the top performing index among Developed Markets, with a year-to date-performance of 29.0%.
Emerging Markets maintained its recovery in 2010, with year-to-date performance of 13.8% for the MSCI Emerging Markets Index versus a return of 74.5% in 2009. The MSCI Thailand and the MSCI Peru Indices were the best performing indices year-to-date, showing returns of 49.9% and 47.8%, respectively. The MSCI Hungary Index was the worst performer year-to-date with a return of -12.0%, followed by the MSCI Czech Republic Index with a -11.0% return.
Source: MSCI
Covered bonds hit record $356bn
December 29, 2010-Banks have sold a record amount of covered bonds this year, as jittery investors backed the ultra-safe forms of debt, in a trend expected to continue in 2011.
Worldwide issuance of the bonds has reached $356.5bn this year – up nearly 20 per cent from 2009, according to data from Dealogic.
Source: FT.com
Morgan Stanley-Exchange-Traded Funds International Equity: EM Allocation Update
December 27, 2010--Morgan Stanley & Co.’s Global Emerging Market
(EM) Strategy team, led by Jonathan Garner, maintains an EM-based country allocation model. The model is adjusted monthly and seeks to outperform
the MSCI EM Index on a six- to 12-month time horizon.
The team made three relative changes to the model this month. Brazil is upgraded from equal-weight to overweight (90 bps) and South Africa moved from underweight (-50 bps) to equal-weight. Meanwhile, Chile was downgraded from equal-weight to underweight (-85 bps). Garner extended his overweight to Malaysia by 40 bps, while scaling back overweight positions in China, Russia, Korea and Czech Republic. Additionally, Garner extended his underweight positions in Philippines and Thailand by 20 bps and 50 bps, respectively, and decreased underweight positions in Mexico and Turkey.
Source: ETF Research-Morgan Stanley
WEF-Global Competitiveness Report 2010-2011
Switzerland tops the overall rankings
December 27, 2010-The United States falls two places to fourth position, overtaken by Sweden (2nd) and Singapore (3rd). The Nordic countries continue to be well positioned in the ranking, with Sweden, Finland (7th) and Denmark (9th) among the top 10, and with Norway at 14th.
Sweden overtakes the US and Singapore this year to be placed 2nd overall. The United Kingdom, after falling in the rankings over recent years, moves back up by one place to 12th position.
The rankings are calculated from both publicly available data and the Executive Opinion Survey, a comprehensive annual survey conducted by the World Economic Forum together with its network of Partner Institutes (leading research institutes and business organizations) in the countries covered by the Report.
view the Global Competitiveness Report 2010-2011
Source: World Economic Forum
Oil stays above $91 as OPEC signals no output hike
December 27, 2010--Oil prices hovered above $91 a barrel Monday in Asia as some OPEC ministers signaled the group doesn't plan to boost output to cool the recent jump in crude.
Benchmark oil for February delivery fell 17 cents to $91.34 a barrel midday Singapore time in electronic trading on the New York Mercantile Exchange.
On Thursday, the contract rose $1.03 to settle at $91.51, the highest level since October 2008. Global oil markets were closed Friday for the Christmas holiday.
Arab members of the Organization of Petroleum Exporting Countries said at a meeting in Cairo over the weekend that the full group would likely not meet until June to discuss production quota policy. OPEC, which accounts for about 40 percent of global crude output, left quotas unchanged at a meeting earlier this month.
Source: Todays Zaman
FEAS Newsletter December 2010
December 24, 2010--The FEAS Newsleter for December 2010 is now available.
Source: FEAS
